week 8: strategic planning Flashcards
strategic planning
defining goals, establishing objectives for achieving these goals, and developing plans to integrate and coordinate activities related to the achievement of these goals
it is goal oriented
what are the three levels of strategy?
- corporate
- business
- functional unit
corporate
strategies followed by an organization as a whole, to achieve goals
business
asks how to compete within a particular industry
functional unit
strategy for a particular business unit such as sales, marketing, or finance
what is the 5-step process of strategy
- strategy analysis
- strategy direction
- strategy formulation
- strategy implementation
- strategy evaluation
strategy direction
includes: mission statement, vision statement, values, strategic pillars, and organizational objectives
mission statement: identifies and purpose
identifies: the purpose, what we do, how we do it, philosophy, who we are, why we do it.
Purpose: guide strategic planning, define scope, provide purpose, promote shared expectations
vision statement: identifiers and purpose
identifies: medium-to-long-range ambitions, how you want to see yourself down the line, and what you want to try to achieve as a unit/organization.
Purpose: promotes commitment, gives an orientation, motivates people, establishes standards
values
The core values are all internal strengths, what is important, organizational principles
strategic pillars
overarching goals that the organization wants to achieve, keep the organization on the right path regarding doing what’s right for the environment, the people and the planet
organizational objectives
Organizational objectives → specific ways to achieve the vision. SMART objectives, looking at objectives vs goals.
SMART goals
- specific
- measurable
- attainable
- relevant
- time-bound
the elements of strategic direction
- Mission statement → purpose of the organization
- Vision statement → long-term direction
- Values → What is important to the organization
- Strategic pillars → Broad long-term goals
- Organizational objectives → specific sport-term means of achieving goals
strategy formulation
What will be your competitive advantage?
What will you offer that no one else offers/you offer better than everyone else?
what are the common options for strategy formulation?
- cost leadership
- differentiation
- focus
cost leadership
to become a cost leader by supplying products and services at the lowest possible cost to as many customers as possible. Competitive advantage
differentiation
to provide a differentiated set of products and services that is difficult for competitors to replicate, how to keep yourself different from other industries
focus
to provide a set of products and services to a niche in the market with the intention of dominating market share
Understanding the market itself, what areas you can go into and perfect so no one can compete with you in that area
strategy implementation
The most complex phase of the process, where most people go wrong
involves the strategic plan
Targeted gaols, tasks to achieve the goals, inside responsibilities, maintaining norms, methods and performance measures, evaluation of the plan
strategic plan
operational plan (turning a strategic plan into an operational plan
strategy evaulation
Performance measure
Key performance indicators (KPI’s)
To actually improve on a strategic plan follows a whole cycle, then you have to review/evaluate then see what you can do it improve.
KPI
quantitive that show progress and result
